An average of US$34.1 billion per year in capital expenditure will be spent on 1673 oil and gas fields in Russia between 2018 and 2020, according to GlobalData, a leading data and analytics company.
Capital expenditure into Russian traditional oil projects will add to up US$55 billion over the three-year period, while heavy oilfields will require US$7.1 billion over the same period.
Onshore projects will be responsible for over 85% of the US$102.6 billion of upstream capital expenditure in Russia, or US$88 billion by 2020. Russian shallow water projects will necessitate US$14.6 billion in capital expenditure over the period.
GlobalData expects that Gazprom, together with Gazprom Neft, will lead the country in capital expenditure, investing US$37.5 billion into upstream projects in Russia by 2020. Rosneft Oil Company and Lukoil Oil Company will follow with US$30.9 billion and US$14.1 billion invested into Russian projects over the period.
Gazprom’s producing Bovanenkovskoye field will lead capital investment with US$5 billion spent between 2018 and 2020, followed by Gazprom’s planned Kovyktinskoye gas field with US$4.3 billion over three years in capital expenditure. Rosneft Oil Company’s producing Samotlorskoye field will need a capital investment of US$2.6 billion by 2020.
GlobalData reports the average remaining capital expenditure per barrel of oil equivalent (Capex/boe) for Russian projects at US$6. Onshore gas projects have the lowest remaining Capex/boe at US$4.80, followed by onshore oil and onshore heavy oil developments with US$6.80 and US$7 respectively. Shallow water oil projects have the highest remaining Capex/boe at US$11.40, while shallow water gas projects need US$8.70 per boe in remaining capital expenditure.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/18122017/globaldata-russian-upstream-projects-require-us1026-billion-by-2020-to-maintain-stable-production/